Saturday, August 19, 2017

FDI in Latin America 2017

A new report from the Economic Commission for Latin America and the Caribbean shows that Foreign Direct Investment in Latin America dropped. It feel 17% from 2011.

But in all this, some good news. The end of the commodity boom has had some positive effects.

After the end of the commodity price boom, investment in extractive industries slowed and this sector’s share of FDI has been falling since 2010, down to 13% of the total in 2016. By contrast, the share of manufactures and services increased to 40% and 47%, respectively. The new investments announced were concentrated in renewable energies, telecommunications and the automotive industry, with the region receiving 17%, 21% and 20%, respectively, of overall investment. Meanwhile, for a second year in a row, the renewable energy sector attracted the most investment, receiving 18% of the total announced for the region, with a third of those investments going each to Chile and Mexico.

Of course, those industries need investment, and it's up to governments to find creative ways to attract it.

The report talks about a "revolution" in the automobile industry. As Europe moves to end the combustion engine and people in the U.S. think more about electric cars, this is obviously a critical time for strategic change. And, as the report notes, cars have increasingly sophisticated computer systems, and Latin America needs to produce the necessary engineers.

It goes without saying that screwing with NAFTA puts all this in jeopardy.


  © Blogger templates The Professional Template by 2008

Back to TOP